Asked by Jailyn MackHandley on May 23, 2024
Verified
The merchandise trade balance:
A) reflects trade in intangibles like insurance and tourism.
B) includes personal gifts to friends abroad.
C) records the flow of financial assets like stocks and bonds.
D) equals the value of imports in goods and services minus the value of exports in goods and services.
E) equals the value of tangible products exported minus the value of tangible products imported.
Merchandise Trade Balance
The difference in value between a country's imports and exports of goods, excluding services.
Intangibles
Assets that have no physical form but possess value, such as intellectual property or brand reputation.
Financial Assets
Economic resources or investments that are paper or digital, such as stocks, bonds, and bank deposits.
- Comprehend the elements constituting a country's trade balance in goods.
- Distinguish between physical and non-physical goods in global commerce.
Verified Answer
YA
Youssef Al MakdissiMay 24, 2024
Final Answer :
E
Explanation :
The merchandise trade balance measures the value of tangible products (goods) that are exported minus the value of tangible products (goods) that are imported. It does not include intangible items like insurance or personal gifts, nor does it record the flow of financial assets. Option D is incorrect as it includes services as well, while the merchandise trade balance only focuses on tangible products.
Learning Objectives
- Comprehend the elements constituting a country's trade balance in goods.
- Distinguish between physical and non-physical goods in global commerce.